Shandong Unicom Mobile Communications Development Strategy Research

Along with the fast and vigorous development of our national economy, the disposable income of residents in urban and suburban area also keep growing rapidly . The improvement of living condition is not only reflected in clothing, accommodation and transportation, it also reflected by that the popularity of mobile phone, which used to be a symbol of social status, has now became a common tool for everyone's daily communication need. The popular demand pushes the telecommunication market to expand, and stimulates the domestic mobile communication industry in china to show a prosperous picture. However, we also realized, between different communication companies , the competition is becoming more and more fierce, the communication charges are becoming lower and lower. The market of land phone is shrinking, and the mobile communication market has changed from the seller's market into the buyer's market. The exploitation cost for market is enlarging and the profit is becoming more and more marginal. At the same time, the development plan of 3G mobile communication is on the schedule. Under this complicated and unstable condition, every mobile communication company is facing the vital point of opportunities and challenges. Since established in 1998, after ten yeas of striving, China Unicom Shandong Branch (hereinafter called as Shandong Unicom) has become a mutual company than before; the market share is enlarging year by year, the company profit is increasing and the distribution ratio of income and expense is now well managed, the network scale is becoming ideal. However, in the macro environment and industry environment, the road in front of Shandong Unicom is bumpy. How to get the market initiative by improving the market share? How to effectively improve their own development ability? How to keep a steady growth rate in the future? All of these have become the subjects that needed to be carefully studied for the future development of Shandong Unicom. Therefore, it is important to analyze, draft and execute the development strategy for Shandong Unicom. It is also the objective and content that will be studied in the thesis.The theory, principle and method adopted in this thesis are mainly strategy management and company administration theories, which are used to analyze the status of Shandong Unicom. Firstly, a brief introduction is done for the research background, theoretical and practical significances, as well as Innovation points. Next, the current developing condition of Shandong Unicom is reviewed, and combined with the strategy management theory to analyze the macro environment and industrial environment, as well as the inner value chain, followed by a clear review of the strategic target and positioning of Shandong Unicom. Thirdly, Grand Strategy Matrix is adopted to analyze the strategic selection for development of Shandong Unicom, and several strategic schemes which are suitable for its development are derived. The evaluation of each one is done as per the evaluation standard of strategy, to set up the development emphasis in the near future and middle as well as further future. Based on the mentioned above, eight measurements are made aiming at the practical communication industry tendency of Shandong Unicom, as well as the status of Shandong Unicom itself. They are: how to keep and improve the market competitiveness of GSM network and CDMA network separately, how to improve the balance development of the two networks, and how carry out the competition, etc. Finally, summarize the final research result of the whole thesis, elaborating the deficiencies in research and expectations in further research has been made in the thesis. The innovation lies in:1.A series of strategy management theories and methods are adopted in the thesis to analyze and study the mobile communication development of Shandong Unicom systematically. The strategic schema and execution plans are valuable to Shandong Unicom, on keeping a steady development as well as increasing the market share. At the same time, it verified the strategy management theory on the mobile communication companies one step further.2.With fast development on current mobile communication technology, the 3G era in China is now on its way. However, close competition does not exist in current telecommunication structure: network construction repetitiveness, monopoly of mobile communication company and shrinking of fixed communication business etc. The demand for regroup of telecommunication is also becoming more and more necessary. Under such condition, analyze on communication development strategy of Shandong Unicom has been made through a series of strategy management theories in the thesis. Finally, we got the conclusion that the horizontal unification strategy and separation strategy for Shandong Unicom are feasible and it is a verification in theory level on regroup of telecommunication in China.